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Military Medical Facilities spell Good News for SA

After reading yet another article with good news for San Antonio and a heart stopping double overtime game where the Spurs pulled through last night, I must say. . .we are truly blessed to be living in the River City.

Ground breaking took place this week on a $720 million dollar military contract to expand local military medical facilities in San Antonio.  This huge project is estimated to take place over the next three years where almost two billion dollars will be spent on the total project.  As always, expansion projects mean more jobs which leads to a more prosperous local economy.  I think back to the series of events that led to me living and doing business in San Antonio and I am thankful for each and every event, I can't imagine another city I'd rather be in with all of the good fortune we are having. 

San Antonio Proclaimed the "Benchmark" for the Rest of the Nation

I just read a very positive article in the San Antonio Express News that showed a nice comparison between San Antonio’s housing market and the rest of the nation’s housing markets.  In previous writings I’ve mentioned that I didn’t think that San Antonio would be hit as hard as the rest of the nation because of a unique combination of a few key market factors.  The Express News mentioned the same factors:

·        High employment rates (95% in comparison with ____ % for the rest of the nation

·        Population growth (expected to remain above 2% next year in comparison with a negative growth rate expected overall in the US)

·        Better than average price appreciation (San Antonio experienced a 1% dip in October in comparison with October of 2007 while the nation experienced an average of 11.3%)

·        Lower tax rates (attracting new businesses to move to the area and existing businesses to continue hiring new employees)

As a result of these factors, we haven’t been hit nearly as hard as the rest of the nation during the wide spread housing slump.  David Kittle, Chairman of the Mortgage Banker’s Association, went on in the Express Article to call San Antonio, “the benchmark for the rest of the country in lending and building.”  Not only are we doing better statistically with prices and population growth, we also have a dramatically lower percentage of growth in the number of foreclosures, 22.7% this year in comparison to 45% as the nation’s average.  As a mortgage banker, I can assure you that I am doing my part to keep this number down by ensuring that I get my clients into loans that not only make it possible for them to purchase their dream home but, loan programs that will enable them to keep up with those payments for the life of the loan and, thus, stay in that dream home with comfort for many years to come.   

Thanksgiving comes early in form of 600 Billion

Interest Rates have gone way down! WHY?

The Mortgage Industry just received a nice boost! The fed is going to buy Mortgage Bonds. The Federal Reserve just announced that it would purchase $600 Billion of Mortgage-Backed Securities backed by Fannie Mae, Freddie Mac,(Conventional Loans) and Ginnie Mae.(FHA and VA loans) This great move by the feds is designed to help increase the availability of Credit, while lowering fixed rate mortgages across the board. The Bond and MBS market is on fire this morning and we have seen already the lowest rates in years this morning.

In addition the the Feds are setting aside $200B to stimulate the other credit markets such as Comsumer loans and Small business loans. This will prop up the Auto, Student and Small business administration loan markets.

As this market reveals itself it is time to get on the phone and take action if you are considering buying, selling or refinancing. This will be short but well received interest stimulus package for all consumers.


Happy Holidays,

Jeff Hamilton

Fed cuts Rates across the board

You may have heard that the Federal Reserve and many other global central banks cut their interest rates yesterday in an attempt to entice more loans and therefore put a little spark back into the economy.  Below is a quick summary of what was done.

·        Fed cut it’s rates from 2% to 1.5%

·        Bank of England reduced from 5% to 4.5%

·        European Central Bank from 4.25% to 3.75%

·        Central banks of China, Canada,  Sweden and Switzerland also had rate cuts

·        Locally, as a result of the Fed’s cuts, All Local banks cut their prime rate from 5% to 4.5%

 

Again, all good news if you are thinking of taking a loan out in the near future!  This will initially help your Credit Card and Car Loan rates and as we move forward Long Term Debt (such as Mortgage Loans) should have a positive reflection.

Stay tuned because times are changing and changing swiftly

Rescue Bill's Effect on the Real Estate Market

We are still waiting to see what the trickle down effect will be of the $700 billion rescue bill that was passed and signed into law last Friday.  NAR (National Association of Realtors) president Dick Gaylord made a statement thanking individuals who voiced their support of the bill saying that without the passage of the bill consumers would be in a very dismal situation right now.  There was some debate in the real estate world as to whether it was a good thing to pass the bill or not but, the general consensus seemed to be in support of the bill even if it wasn’t truly perfected yet.  The truth was that the bill needed to be passed quickly in order to stop any further meltdown of the financial industry and its leaders; procrastination would have only allowed the tailspin to progress further. 

 

Gaylord went on to say that, “the needs of  Main Street (will be) placed front and center.”  The bill is anticipated to give the real estate market a needed boost of energy.  As Gary Keller, head of Keller Williams Realty stated, “The market should regain some confidence, and since markets are built mainly on confidence, that’s no small thing.  In fact it’s a huge thing and it’s imperative for the market to move forward.  But beyond that, we have to wait and see.”  Very true!  Business is still moving forward in my office as we play the waiting game to see what the bigger impact will be for the real estate world but, I’d have to agree with the experts the Rescue Bill has at least pointed us in the right direction. 

Texas Banks Buck the Trend

Everything’s bigger (and better) in Texas including the stability of our banks.  In a report released by advisory firm Sheshunoff & Co. Investment Banking, Texas banks outperformed most of the country during the first half of the year with additional data suggesting that Texas will do the same for the last half of the year as well.  The report credits Texas’s strong economy and inflow of new residents from other states in part, due to our stronger job economy. 

Banks in rural areas have also been able to keep their heads above water by making smart agricultural loans due to the high price of farm commodities.  Furthermore, Texas banks learned a few hard lessons twenty years ago when there was a near epidemic of bank closings.  The lessons about strict underwriting and credit valuations have stuck with many Texas banks which has put them well ahead of the curve in comparison with many other banks across the nation. 

700 Billion Bailout Part II

Is your Lender's Net Worth enough?

All agencies such as Fannie Mae, Freddie Mac and Ginnie Mae just released major changes to what it will require lenders to have in total net worth to be considered “acceptable.”  This is sure to knock many lenders out of the home mortgage market.  The new standards will go into effect on December 31, 2008.

·        Minimum Lender Adjusted Net Worth to be maintained by a lender is $1.65 million for already approved seller/servicers

·        Minimum Lender Adjusted Net Worth to be maintained by a lender is $2.5 million for new lenders seeking Fannie Mae approval PLUS a dollar amount equal to one quarter of one percent of the outstanding balance of its total mortgage portfolio of loans served for Fannie Mae

Additionally, in light of recent major losses by many financial entities, Fannie Mae will impose the following rules in order to further protect itself.

·        Fannie Mae will terminate a lender’s rights if it sees a decline in Lender Adjusted Net Worth of more than 25% over a quarterly reporting period, or more than 40% over a two-consecutive-quarter reporting period

·        This new condition will actually look back over the past six month at the end of this year (June 30-December 31, 2008) to determine if a lender is in violation of this new standard

Because we are already one of 11seller/servicers with Fannie Mae because of our relationship with Network Funding, United Lending LLC and I want to assure our clients and referral partners that we are proud to be in compliance with the increased requirements and look forward to a continued business relationship.  Trust that our company will continue to be your rock in the business.

700 Billion bailout

what does the bailout mean to you?

Texas Vet's get a well deserved break!

Texas Veteran’s Land Board Loans offer benefits beyond reduced rates for qualified veterans.  Texas Reservists and National Guard troops called to active duty in support of the War on Terror will be allowed to WAIVE interest payments on all VLB home loans as long as they are on active duty.  Under this policy, Reservists and National Guard members only pay the principal and any required escrows for taxes and insurance while they are on active duty.  In addition, they will enjoy a three month grace period after they are deactivated before interest payments resume.  Many people don’t know about this added benefit from the Texas Veteran’s Land Board which can result in thousands of dollars saved.  For more information please contact us at 210-408-6060 or email at jeff.hamilton@unitedlendingusa.com.  As always, thank you for serving our country!